Canada’s first offshore wind projects took a step closer to reality this weekend with the launch of a pre-qualification process for potential bidders, part of a wider plan to bring up to 5 GW of capacity online off Nova Scotia.
Sean Fraser, the federal minister responsible for the Atlantic Canada Opportunities Agency, told reporters in Halifax on Saturday that the new process is designed to weed out weak entrants before formal bidding begins early in 2025.
“You want to make sure you are not awarding the opportunity to a party that doesn’t actually have the capacity to deliver,” Fraser said. “The whole purpose is to make sure we are dealing with serious players who have the capacity to do what they say they are going to do.”
The prequalification stage will run for a minimum of 90 days, while a separate call for information — aimed at the Mi’kmaq, the fishing and seafood sectors and offshore wind developers — will stay open for at least 30 days. Fraser said bids will eventually target up to 3 GW of generation, with Ottawa and Halifax willing to expand that to 5 GW “if feasible.”
Nova Scotia energy minister Trevor Boudreau stressed the urgency of the process. “Our goal is to move this along in an appropriate fashion to make sure it’s done right, but certainly our goal is to move it quickly as well,” he said.
The announcement comes just over a week after prime minister Mark Carney said Ottawa would back Nova Scotia’s so-called Wind West ambitions, a mega-project that provincial officials estimate will cost $60bn in initial capex. Nova Scotia is seeking a 4% royalty from future production, plus federal tax credits and Canada Infrastructure Bank financing.
Four sites have been earmarked: French Bank, Middle Bank and Sable Island Bank off Nova Scotia’s Eastern Shore, and Sydney Bight northeast of Cape Breton. A joint letter from Ottawa and Halifax has instructed regulators to prioritise at least one parcel in Sydney Bight, one on French Bank and two on Middle Bank.The governments are also moving to raise the bar for entry.
All bidders must pay a C$250,000 nonrefundable fee, with successful applicants on the hook for an additional C$750,000 upon being awarded a submerged land licence.“The purpose of these fees is to demonstrate a seriousness of intent and secure the exclusive rights to the submerged lands,” the directive stated.
